A BILL TO BE ENTITLED
AN ACT to make the film production credit nonrefundable.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑130.47 reads as rewritten:
"§ 105‑130.47.  Credit for qualifying expenses of a production company.
…
	(f)	Limitations. – The amount of credit allowed under this section with respect to a production that is a feature film may not exceed the lesser of twenty million dollars ($20,000,000) or the amount of tax imposed by this Part for the taxable year reduced by the sum of all other credits allowable, except tax payments made by or on behalf of the taxpayer. This limitation applies to the cumulative amount of the credit allowed in any tax year, including carryforwards claimed by the taxpayer under this section for previous tax years. Any unused portion of a credit allowed in this section may be carried forward for the next succeeding five years. No credit is allowed under this section for any production that satisfies one of the following conditions:
(1)	It is political advertising.
(2)	It is a television production of a news program or live sporting event.
(3)	It contains material that is obscene, as defined in G.S. 14‑190.1.
(4)	It is a radio production.
…."
SECTION 2.  G.S. 105‑151.29 reads as rewritten:
"§ 105‑151.29.  Credit for qualifying expenses of a production company.
…
	
(f)	Limitations. – The amount of credit allowed under this section with respect to a production that is a feature film may not exceed the lesser of twenty million dollars ($20,000,000) or the amount of tax imposed by this Part for the taxable year reduced by the sum of all other credits allowable, except tax payments made by or on behalf of the taxpayer. This limitation applies to the cumulative amount of the credit allowed in any tax year, including carryforwards claimed by the taxpayer under this section for previous tax years. Any unused portion of a credit allowed in this section may be carried forward for the next succeeding five years. No credit is allowed under this section for any production that satisfies one of the following conditions:
(1)	It is political advertising.
(2)	It is a television production of a news program or live sporting event.
(3)	It contains material that is obscene, as defined in G.S. 14‑190.1.
(4)	It is a radio production.
…."
SECTION 3.  This act is effective for taxable years beginning on or after January 1, 2013.